‘National funds’ empower entrepreneurship in tourism

ABU DHABI / WAM

Investment in the UAE’s tourism sector is increasingly attracting entrepreneurs, underpinned by its strong contribution to the national economy, significant share of GDP, job creation potential and growing role in boosting the country’s global competitiveness and income diversification. Strong government support for tourism and hospitality infrastructure has further opened avenues for sustainable economic growth.
The UAE has actively encouraged investment in tourism projects by creating an ideal, globally competitive investment and empowering start-ups through numerous national funding funds.
These funds provide tailored financing solutions and early-stage support to ensure business continuity and long-term success. Over the past decades, the UAE has launched dozens of national funds, accelerators and programmes aimed at stimulating entrepreneurship and empowering the business sector, with tourism investment among the key focus areas.
These initiatives have delivered notable achievements by offering a wide range of services, including advisory and financing solutions, capacity-building, entrepreneurship awareness, incentives, and access to government procurement opportunities.
They also provide technical, administrative and training support to help entrepreneurs grow their businesses, build national tourism capabilities, encourage Emirati talent to enter the sector, diversify specialised tourism products and foster innovation and digital transformation.
Together, they have created a nurturing ecosystem for small and medium-sized enterprises (SMEs) and innovative start-ups. The “World’s Coolest Winter” campaign, launched this year under the theme “Our Winter is Entrepreneurial”, highlights the pioneering role of national funding funds in promoting tourism investment, a sector that occupies a central position in the UAE’s economic landscape due to strong global tourist demand, particularly during the winter season. Established in Abu Dhabi in 2007, the Khalifa Fund for Enterprise Development has played a leading role in encouraging investment across multiple sectors.
It has provided entrepreneurs with a platform to incubate and grow their ideas according to international standards. The fund expanded nationwide in 2011 with branches in Ajman, Ras Al Khaimah and Fujairah, offering targeted financing and support services for entrepreneurs and SMEs, as well as access to educational resources and practical business advice. Since its inception, the fund has created more than 15,000 jobs, supported over 5,000 members and provided more than AED1.4 billion in funding to over 1,200 companies.
Its financing programmes include start-up funding and expansion financing, targeting priority sectors such as healthcare, education, agri-tech, ICT, tourism, industry and innovative projects. The start-up financing programme offers loans covering up to 80 percent of project establishment costs, with flexible terms, repayment periods of up to 84 months and grace periods of up to 24 months. In 2024, the fund delivered entrepreneurship training to 5,658 applicants and group advisory sessions to 613 participants.
Since its establishment in 2002, the Mohammed bin Rashid Establishment for SME Development, part of Dubai’s Department of Economy and Tourism, has provided a comprehensive platform to support Emirati entrepreneurs. Its services span planning, capacity-building, accelerators, incubators, training programmes, licensing, marketing, financing, incentives and access to government procurement.
The establishment aims to support the creation of around 8,000 companies over the next eight years, raising the total number of supported Emirati businesses to 27,000 by 2033, compared with 19,000 by the end of 2024.
Total incentives provided since inception have exceeded AED800 million. Its financing arm funded 44 projects in 2024 with a total value of AED35.17 million, bringing the cumulative number of funded projects since 2015 to 168, with total financing of AED137 million. Moreover, the Hamdan Innovation Incubator supported 66 entrepreneurs in 2024, up from 29 in 2023, raising the total number of supported start-ups to 826. Established in 2005 under the Sharjah Economic Development Department, RUWAD aims to foster a supportive environment for SMEs, develop Emirati entrepreneurial capabilities and promote a culture of entrepreneurship.
It provides financing, training, exemptions and preferential benefits, alongside advisory services delivered to the highest standards. RUWAD has launched a smart application enabling members to access financing services, training programmes, events and innovative initiatives. The foundation currently has 1,909 members, has trained 9,724 participants, and has financed 106 projects. Emirates Development Bank (EDB), owned by the UAE government, began operations in 2015 to support national economic objectives by providing flexible financing solutions to SMEs. Since its establishment, the bank has extended financing worth AED30 billion, supported more than 13,500 companies, and contributed AED10 billion to GDP.
In October this year, EDB launched new financing packages and initiatives to support start-ups and SMEs, aimed at accelerating entrepreneurship growth across the UAE by improving access to finance, expanding digital tools, offering mentoring programmes and enabling entrepreneurs to join specialised incubators and accelerators. Through its “EDB360” digital platform, entrepreneurs can open business accounts within minutes, apply for financing without traditional collateral requirements, and connect directly with ecosystem partners supporting launch and expansion stages.